I am not aware of any functionality of creating quotes in service
contracts module.
My knowledge is that the client will have to implement Oracle Quoting
for this. IN order to support this, they will also need to have
installed base and inventory - but I am assuming that they already have
these modules implemented.

As noted by you ,Install Base and Inventory have been implementd. However
Quoting is to be implemented in the next phase. In the meantime, how can
quotes be prepared for Service programs to be offered to the client. Is
there any way to achieve this.
Kindly inform me on the HTML method of creating quotes as mentioned in ur
previous posting.

In html quoting,
a) create quote header with details about the customer
b) create quote line for the product you are selling - say computer
c) select the product line created; and select 'add service' to the line
d) query for the service item on the page that comes up.
e) select service contract item and click ok,
f) change pricing details for the contract item as required.

There is another process, where you have to create a contract for an
item tht has already been sold and exists in the install base
For that process, the steps are as follows
a) create quote header
b) on the lines page, select 'add service to existing product'
c) search in install base for the instance.
d) then search for the service contract item and add it
e) on the quote lines you will see only the contract item now.

Here are my inputs.
In Service Contracts, we previously (until 11.5.9) had a
functionality for Quote Creation from the OKS form. Oracle
provided an XML based template that you can modify to capture
the fields related to your Service Agreement and print in pdf
format.
I am not sure if this is still available in 11.5.10 as I heard
there is a major shift in the functionality in 11.5.10 for OKS.

As for the HTML Quoting, this is more related to your Sales
function. In 11.5.10, you can associate a Sales Contract
template to your Quote, and when you use the Print Quote
functionality, the Quote prints the XML report in pdf format. It
can be for your regular purchase items or your Service items
associated to the serviceable items.

Now how you print the Service Contract Quote depends on a few
things.
If your Sales guys or the Contracts team is using the Quoting
module to create Quotes for Service Contrcats, then you can
tweak the XML report and make the out put pull your Contracts
related fields and output the report accordingly. XML publishing
is quiet flexible is these terms.

In case you are not using Oracle Quoting module to create the
Quotes for the Service Contracts, then utilize the XML format
provided by Oracle and create your own style sheets. Associate
this to a Report output and access this Report as a concurrent
program from your Service Contracts module. This was what we
adapted in one of my previous project and it worked fine.